James O'Connor (Cork East, Fianna Fail)
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295. To ask the Minister for Finance if he will consider including beauticians along with hairdressers in the 9% VAT reduction in the 2026 Finance Bill; and if he will make a statement on the matter. [56803/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The EU VAT Directive, which Irish VAT must comply, generally holds that all economic activity is liable for VAT at the standard rate which must be set no lower than 15%. Ireland currently charges a standard rate of VAT of 23%. A member state may apply two reduced rates of no lower than 5% to goods and services which explicitly qualify for such treatment. Ireland currently has two reduced VAT rates of 9% and 13.5%.

Goods and services which may qualify for a reduced rate of VAT must be included in a schedule under Annex III of the Directive. The two industries which will be able to avail of the VAT reduction applied to the hospitality sector, food and catering and hairdressing, are listed under Annex III.

Services offered by beauticians related to care of the human body are not included in this list. Ireland avails of a Derogation under Article 105b which allows for a setting of a VAT rate of 13.5% for services offered by beauticians. Conditions for this are that a rate no lower than 12% must apply and that the rate is "parked" at the chosen rate.

It is not possible to extend the reduction in the VAT rate to other services offered by beauticians. A 9% rate will apply to hairdressing services they provide.